As I started entering expenses, it occurred to me that there were more expenses than I thought. 

It normally takes 1 h 30 from Cancun airport to Tulum and that's what it's taken me on average - it can be less with low traffic and if your driver speeds because you could miss your plane ;-).

First, the cons of C-class, aside from section 8, C-class has more fluctuation in price, more tenant problems (vacancy expenses, evictions, etc), and local crime.

Im too far away to deal with this and its getting expensive. 

Make sure the rental income comfortably covers your mortgage, taxes, and other expenses.

Hey Jay, I moved to Columbus a few years ago (from Portland, Oregon which was super expensive) to become a full time real estate investor, and ever since, I've completed quite a lot of BRRRRs, flips, and own a successful rental portfolio here in Columbus Ohio.

I think with 8 units you have more income cushion if you have a vacancy or an expense like an HVAC issue.

My thoughts are 1) I will have a fixed rate and not worry about it changing every 5 years thus helping me control my expenses a little better (of course aiming to secure a good rate whenever the rates hopefully come down), and 2) it will be amortized over 30 years and if I get a good rate, then my cash flow should increase by a decent amount. 

Owner is saying expenses are about $10,000 per year.

With actual cash value you'll get a depreciated claim payout and much of the expense might not be covered.